Q. Consider the following statements:

1. The share of the Primary Agricultural Credit Societies (PACS) in the delivery of rural credit is falling.
2. Primary Agricultural Credit Societies (PACS) cannot borrow from Commercial Banks.

Which of the above statements is / are correct?
Answer: Both 1 and 2 are correct
Notes: The share of PACS in rural credit distribution has been decreasing, mainly due to the growth of regional rural banks and microfinance institutions. Additionally, PACS do not have direct access to borrow from commercial banks; they depend on Central Cooperative Banks for funds. Therefore, both statements 1 and 2 are correct based on recent data and structure.